Positions

Calgary-based Suncor Energy Inc. plans to cut 1,000 people from its workforce by mid-October through layoffs, retirements or discontinuation of contract positions that resulted from its merger with Petro-Canada Corp., the company said Thursday. Combined, the two producers employed a total of 13,000 people before their merger was announced last March (see NGI, March 30).

April natural gas spiraled lower Friday as traders noted liquidation of earlier long positions and had to factor in continuing negative economic news. April natural gas futures fell 14.3 cents to $3.945, and the May contract tumbled 15.9 cents to $4.017. April crude oil rose $1.91 to $45.52/bbl.

With a nod to the recession, NiSource Inc. business segment NiSource Gas Transmission & Storage (NGT&S) said Friday it plans to cut 370-380 positions across its 16-state operating territory during the course of 2009.

With a nod to the recession, NiSource Inc. business segment NiSource Gas Transmission & Storage (NGT&S) said it plans to cut 370-380 positions across its 16-state operating territory during the course of 2009. The operating segment, which houses Columbia Gas Transmission LLC, Columbia Gulf Transmission Co. and Crossroads Pipeline and holds partnership interests in Central Kentucky Transmission Co., Hardy Storage Co. and Millennium Pipeline LLC, said the structural changes are “designed to enhance operational efficiency, support growth initiatives and maintain safe, reliable service to customers.” The changes include: (1) focusing company resources on core business functions, consolidating and improving efficiency; and (2); implementing technology and process improvements across the organization. “Employee teams from across our organization have been evaluating all aspects of our existing business structure and work processes over the past few months,” said NGT&S President Christopher Helms. Of the job cuts, Helms said eligible employees will be offered a severance package and outplacement assistance, while certain employee groups will be eligible for voluntary severance. Combined, the NGT&S companies operate about 15,000 miles of interstate gas pipeline and 37 underground gas storage fields, delivering more than 1 Tcf of gas per year.

Supermajor and large independent producers generally enjoy strong liquidity positions, but tighter capital markets will crimp the purchasing power of smaller players at a time when some properties would likely become available at “distressed prices,” Standard & Poor’s Ratings Services (S&P) analyst Thomas Watters wrote in a recent note.

Supermajor and large independent producers generally enjoy strong liquidity positions, but tighter capital markets will crimp the purchasing power of smaller players at a time when some properties would likely become available at “distressed prices,” Standard & Poor’s Ratings Services (S&P) analyst Thomas Watters wrote in a recent note.

December natural gas futures scored big gains Wednesday as traders expected continued cold weather and holders of short positions were forced to minimize losses. December futures rose 22.7 cents to $6.743 and January added 21.1 cents to $6.813. December crude oil fell 77 cents to $53.62.

A 74% spike in crude oil prices since the beginning of 2006 and a 28% dip in the value of the dollar against the euro have substantially affected the competitive positions of domestic energy industries, affecting imports and exports of both gas and coal, and changing usage patterns for natural gas, according to Charles Whitmore of FERC’s Office of Enforcement.

A 74% spike in crude oil prices since the beginning of 2006 and a 28% dip in the value of the dollar against the euro have substantially affected the competitive positions of domestic energy industries, affecting imports and exports of both gas and coal, and changing usage patterns for natural gas, according to Charles Whitmore of FERC’s Office of Enforcement.